SMC

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Acknowledgement
In completing my assignment, I had to take help and guidelines from some respected
people including my dearest lecturers who deserve my greatest gratitude. I would like to
thank Mr Sanjaya Jayasinghe giving me this great opportunity to do this assignment as
well as for providing me with the most accurate guidelines and assistance on the
completion of my assignment.
I would also like to make this an opportunity to thank my dear friends of SLIM-Kandy
institute for making valuable comments and suggestions on this proposal which gave me
a great inspiration to improve this assignment and for sacrificing their valuable time
expecting to get a successful outcome from the overall assignment.
Lastly, I would like to thank the staff of SLIM-Kandy institute for providing us with a
very comfortable environment to study.

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Content
Page No
Executive Summary 03
Task – 01 04
1.1 E-commerce activities executed by the banking industry 04
1.2 Areas that need improvements 08
Task – 02
2.1 Importance of having a database 09
2.2 How bank can use database to build strong relationship / 11
loyalty with customers
Conclusion
References
Annexure

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Executive Summary
As the digital marketing assistance manager, I have given by three tasks to
complete.
In Task 01, I have evaluated E- commerce activities executed by the banking
industries.
In Task 02, I have explained the importance of having data base and I have
re comment how commercial bank can use data base to build strong
relationship.
In Task 03, I have explained the profile of customers who use internet
banking services.

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Task 01
Today, E-commerce plays an important role in banking industry. E- Commerce is
commonly known as electronic marketing and it consists of selling and purchasing of
goods was done using electronic system like internet.
E-commerce has helped the consumer in many ways in banking industry. This service
can be accessed from anywhere any time allowing the customers to control their funds.
As the Asst.Manager Digital Marketing I have taken some local bank of Sri lank to
identify and evaluate current E- commerce activities executed by the banking industry.
1.1 E-commerce activities executed by the banking industry
1) Automated Teller Machine (ATM)
In Sri Lanka mostly every bank uses ATM. This ATM is an electronic
communication device from which customers can do their transaction without the
need of a human cashier. ATM machine acts like a teller point in a bank who takes
and given money over the counter. ATM bank customer have plastic card with pin
number to use this system. They can make withdrawals and check balance by using
this system.
ATM service gives more benefits for customers as follows,
- ATM provide 24 hours service
- ATM provide service without any error
- ATM provides privacy in banking transaction

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2) Smart Card
Today, every bank provides smart cards for their customers. That card is a plastic card
with a chip. The chip contains information like about the bank account details. There are
different type of smart cards are available. Such as,
 Debit card
- Using debit card, debit card holder can buy goods or withdraw cash that the
amount is taken from the bank account right way. When customer do transactions
using debit card, that value is debited and balance comes down.
 Credit card
- Credit card holder can buy goods using this credit card and they can pay amount
later.

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3) e- cheque
e-cheque is an electronic copy (scanning image) of a real cheque which is transferred
by email. That e-cheque facilitates online payment which can be complemented with the
paper cheque. It provides more security, speed and processing efficiency of all electronic
transaction with the familiar.
4. SMS Banking
SMS banking is a form of mobile banking. In Sri Lanka, some bank use this facility to
send messages (also called notification or alert) to customer’s mobile phone using SMS
messaging or a service provide by them which enable its customer to perform some
financial transaction using SMS.

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5. Internet Banking
Using internet banking service customer can manage their money online with using
mobile device or computer without access to a bank. Customers need internet access to
handle this service. Internet banking customers have user ID and password to handle their
own account.
Using this service, customer can do many works. Such as,
- Customer can see their account balance
- Transfer their money
- Pay bills
- Request something from the bank etc.

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1.2 Areas that need improvements
As the Asst. Manager Digital Marketing I would like to suggest some improvements,
which are as follows,
1. Make app easy to use
Today, one of the biggest problems surrounding mobile banking application is that they
have been difficult to use. When using these applications, customers face many problems
like accessing problem. In this situation many customers give up mobile banking options.
So, bank should design their app easier to use. If banks make apps easy to use, more
customers will download it and use it.
2. Keep safety priority
If your application is not secure, it is useless to having password and user ID. So, Bank
should create highest level of security with the application and give regular advice to the
customers like how safe when it is.
3. Make it personal and intuitive
Bank should create an advanced application which is easy to customize for the client.
Instant access to the bank account with a simple touch is now available on many phones
like iphones. Bank should intuitive and customize features that customers want from their
mobile banking application as follows,
- immediately check account
- Deposit cheques at any time
- greeting names and personal images

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2.1 Importance of having a database
According to Wikipedia A database is an organized collection of data.
Banks need database because banks have so many data. Such as,
- About customers
- Products details
- Employee details
- Account details etc.
So, banks need to store this data somewhere. This data could be in text format,
number, dates and document etc. In this task as the Asst. Manager Digital Marketing I
have to explain importance having a database.

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Importance of having a database as follows
1. Reduces complexity
- Banks would need to have only a non-repeated unique data because if the
redundant data will lead to conflict.
2. All key information in one and only one place
- Banks has large number of customers. So, it is difficult to get information quickly.
Database help to search their information is in one key.
3. Easy to contact customers
4. Have huge security
5. Can get knowledge to make decision
6. Having accuracy
7. Can share data
8. Balancing conflicting requirement

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2.2 How bank can use database to build strong relationship / loyalty with customers
Using database bank can know their customers details. Such as,
- Who are they
- How they have been marketed
- How they responded
Database help to manage the activities around customer engagement. Customer
relationship is essential reasons that enhance purchase product or service. Every bank has
large number of customers. That all customers want to feel like individuals, not like
target. A good database can provide a foundation to build customer loyalty.
Using following ways banks can increase customer loyalty through database.
1. Using email and internet data
The internet and email provide cost- effective channel of communication to be used in
building relationship with customers. Most bank take advantage of digital tracking to
register and store website visit and browsing patterns. When some customer log into their
bank’s website, that customer can see greeting like “Welcome back” on the screen. Banks
can recognize their name or by using this technology.
2. Using purchase and communication history
Most databases maintain details about customers purchase histories. Bank should use
this way because the database records every interaction between the company and
customer. Such as,
- About send emails
- Returns product
- Called customer service
So, bank can give quality service and evaluating each customer’s life time value and
other customer value metrics by using interaction histories records.

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3. Using personal customer account information
Customer profile information helps to individualize messages. These massages do not
go to every person in database.
Benefits of using personal customer profile information.
1. Banks can surprise and delight their customers through sending special offers,
gifts and greeting on customer’s birthdays and anniversaries.
2. Banks can offer their new product or service for most suitable customers
Eg: If bank need to inform about oldest account for old people. They
can get information about that customer through database
3. Can get information about customers family members. They can inform about
their product and service for that family members.
Eg: If customers have kids bank can inform that customer about
kids saving accounts.
4. In-Bound Telemarketing
Customer data appears on the screen in front of the in-bound telemarketer. So, that
telemarketer can treat the caller in a personal way. The operator knows the customer’s
value and status. The operator can ask about information provide on the customer’s list of
customer profile. So, operator can greet and treat each customer as an individual, not as
just some random person making a call.
5. Searching sales data
Using sales data bank can find out the most popular product or service. It will also help
to discover seasonal sales trends and what service is best.
Eg: Which account is the best?
Which loan facility gets more? etc

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Task 03
In this task as the Ass. Manager Digital Marketing I have to explain the profile of
customers who use internet banking service.
In banking industry, every bank has to deal with different customers like who have
specific financial loan, different needs and wants and who also have the necessary finance
resource and authority to purchase the service.
So, banks need to segment their customers. Banks can divide their customers into
similar need, characteristics, or behaviors. Such as,
- Age
- Family size
- Gender
- Family life cycle
- Income
- Occupation
Dividing as below bank can identify profile of customers who use internet banking
service and how potential digital channel to reach those customers.

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3.1 Profile of customers who use internet banking service more frequently
The bank can segment their customers using Occupation as follows,
 Students
This segment consists following consumers.
- Full time Undergraduate
- Full time Poster graduate
- Part time student
- School children
Most students depend on their parents or they doing part time jobs. So, they have low
income. University students are main user of internet transaction. Because they are busy
with their study.
However, they access internet banking service at least once a week. Almost they use
internet banking service to checking account balance, transferring fund and remote
payment.

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 Government workers
This segment consists consumers who get monthly income is between 30,000- 40,000.
They segment is highly engaged with internet banking. They use internet banking to pay
bill, and interested in receiving expert guidance on personal finance and investment.
 Businessman
This segment consists who get high income. They have serious concerns about the
safety and security of internet transaction. They always seek advice to help them improve
how they manage their finance. Bank should inform them about the benefits of internet
banking and alleviating their security corner.
 Retired People
This segment consist elders people. So many retired people don’t know about internet
banking. So, bank should inform them about internet banking. These consumers are value
seeker. They are interesting about products that offer tangible rewards.

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3.2 Potential digital channels to reach those customers
Bank can reach their customers for using digital channel as follows,
 Mobile Marketing
Mobile marketing involve all mobile phone marketing on all cell phone devices. That
efficiency improves through an understanding of how individuals use mobile phone,
especially a smart phone. Bank can use mobile marketing to inform their customers by
using following ways.
- Text massages
- Display ads
- Video advertising
- In-app advertising
Using mobile marketing way bank can reach customers like student, business people,
Government workers and retired people

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 Online Social Network
Using social media network bank can market their product or service for their
customers. Mostly social media use by younger generation. So, bank can reach student
using social media. It is a procedure wherein strategic are made and executed to draw in
traffic for a website or to gain attention of buyers over the using different social media
platform.
Social media channels are,
- Face book
- Twitter
- Blogs
- Instagram
 E-Mail Marketing
Bank can promote their product or service for business people by E-Mail Marketing.
This is a way to rapidly communicate a message to potential customers. It cannot simply
be a program where addresses are purchased and mass e-mails are sent to individuals on
the list.
 Online Advertising
Online advertising is form of marketing and advertising. Bank can deliver their
promotional marketing message to consumer through internet. Bank use this way to
advertise business people and young people.

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Conclusion
E banking has its own advantages and disadvantages. The main advantages
of implementing E banking are an increase in customer satisfaction. This
because do not have to branches in order to assess their accounts make
withdrawal and make deposits. They can also check it any time of the day a
features that physical branches do not offer thus creating a good relationship
with bank and customers. E commerce activities in Sri Lanka have to be
improved and data base also helps to do complete the works in banks. Banks
can market their products and services by using potential digital channel.

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References
1. Kenneth E. Clow , Donald E Baack. Advertising, promotional and marketing
communications study kit Sixth Edition
2. Google

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Annexures